Cap-and-Trade Letter Stating Concerns Sent to Governor Brown

Thursday, July 13, 2017

SACRAMENTO, CA -- After a whirlwind of discussions thanks to Gov. Brown's legislative cram down, the Senate Republican Caucus delivered him a letter voicing concerns about the detrimental effects of his proposed cap-and-trade policy.

Below are excerpts:

Preserving quality of life for all Californians requires thoughtful policies that provide for balance and protection of California's fragile economy. For this reason, we write to advise you that our Caucus is united in opposition to the current efforts to extend the state's cap-and-trade program through Assembly Bill 398 (E. Garcia).

We know that we do not need to remind you that this year's Senate Bill 1 enacted a gas tax increase of 19 cents per gallon and a significant car tax increase. The Legislative Analyst's Office advised in a March 29, 2017 letter to Assemblymember Vince Fong that cap-and-trade could raise gas prices by an estimated 63 cents per gallon in 2021, increasing to 73 cents per gallon in 2031. The cap-and-trade price impacts will be imposed on top of the tax hikes attributable to SB 1. We believe that the proposed cap-and-trade extension combined with the gas tax and car tax hikes will be a crushing blow to California residents and small businesses negatively impacting their quality of life.

We are also deeply concerned about the way in which AB 398 is being handled and rushed to a vote. This bill would extend and significantly reconfigure a multi-billion dollar program, whose effects on the State's economy to date have not been seriously examined and discussed. Given the magnitude of its effect on the price of food, fuel, electricity, manufactured goods, and numerous statewide businesses that are sensitive to price increases in the price of fuel and power, it is astounding that a bill of this import would be rushed through the Legislature so quickly without time for meaningful public discussion and debate.